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How The Chinese Will Establish A New Financial Order
Submitted by Porter Stansberry via InternationalMan.com,
For many years now, it’s been clear that China would soon be pulling the strings in the U.S. financial system.
In 2015, the American people owe the Chinese government nearly $1.5 trillion.
I know big numbers don’t mean much to most people, but keep in mind… this tab is now hundreds of billions of dollars more than what the U.S. government collects in ALL income taxes (both corporate and individual) each year. It’s basically a sum we can never, ever hope to repay – at least, not by normal means.
Of course, the Chinese aren’t stupid. They realize we are both trapped.
We are stuck with an enormous debt we can never realistically repay… And the Chinese are trapped with an outstanding loan they can neither get rid of, nor hope to collect. So the Chinese government is now taking a secret and somewhat radical approach.
China has recently put into place a covert plan to get back as much of its money as possible – by extracting colossal sums from both the United States government and ordinary citizens, like you and me.
The Chinese “State Administration of Foreign Exchange” (SAFE) is now engaged in a full-fledged currency war with the United States. The ultimate goal – as the Chinese have publicly stated – is to create a new dominant world currency, dislodge the U.S. dollar from its current reserve role, and recover as much of the $1.5 trillion the U.S. government has borrowed as possible.
Lucky for us, we know what’s going to happen. And we even have a pretty good idea of how it will all unfold. How do we know so much? Well, this isn’t the first time the U.S. has tried to stiff its foreign creditors.
Most Americans probably don’t remember this, but our last big currency war took place in the 1960s. Back then, French President Charles de Gaulle denounced the U.S. government’s policy of printing overvalued U.S. dollars to pay for its trade deficits… which allowed U.S. companies to buy European assets with dollars that were artificially held up in value by a gold peg that was nothing more than an accounting fiction. So de Gaulle took action…
In 1965, he took $150 million of his country’s dollar reserves and redeemed the paper currency for U.S. gold from Ft. Knox. De Gaulle even offered to send the French Navy to escort the gold back to France. Today, this gold is worth about $12 billion.
Keep in mind… this occurred during a time when foreign governments could legally redeem their paper dollars for gold, but U.S. citizens could not.
And France was not the only nation to do this… Spain soon redeemed $60 million of U.S. dollar reserves for gold, and many other nations followed suit. By March 1968, gold was flowing out of the United States at an alarming rate.
By 1950, U.S. depositories held more gold than had ever been assembled in one place in world history (roughly 702 million ounces). But to manipulate our currency, the U.S. government was willing to give away more than half of the country’s gold.
It’s estimated that during the 1950s and early 1970s, we essentially gave away about two-thirds of our nation’s gold reserves… around 400 million ounces… all because the U.S. government was trying to defend the U.S. dollar at a fixed rate of $35 per ounce of gold.
In short, we gave away 400 million ounces of gold and got $14 billion in exchange. Today, that same gold would be worth $620 billion… a 4,330% difference.
Incredibly stupid, wouldn’t you agree? This blunder cost the U.S. much of its gold hoard.
When the history books are finally written, this chapter will go down as one of our nation’s most incompetent political blunders. Of course, as is typical with politicians, they managed to make a bad situation even worse…
The root cause of the weakness in the U.S. dollar was easy to understand. Americans were consuming far more than they were producing. You could see this by looking at our government’s annual deficits, which were larger than ever and growing… thanks to the gigantic new welfare programs and the Vietnam “police action.” You could also see this by looking at our trade deficit, which continued to get bigger and bigger, forecasting a dramatic drop (eventually) in the value of the U.S. dollar.
Of course, economic realities are never foremost on the minds of politicians – especially not Richard Nixon’s. On August 15, 1971, he went on live television before the most popular show in America (Bonanza) and announced a new plan…
The U.S. gold window would close effective immediately – and no nation or individual anywhere in the world would be allowed to exchange U.S. dollars for gold. The president announced a 10% surtax on ALL imports!
Such tariffs never accomplish much in terms of actually altering the balance of trade, as our trading partners simply put matching charges on our exports. So what actually happens is just less trade overall, which slows the whole global economy, making the impact of inflation worse.
Of course, Nixon pitched these moves as patriotic, saying: “I am determined that the American dollar must never again be a hostage in the hands of international speculators.”
The “sheeple” cheered, as they always do whenever something is done to “stop the speculators.” But the joke was on them. Within two years, America was in its worst recession since WWII… with an oil crisis, skyrocketing unemployment, a 30% drop in the stock market, and soaring inflation. Instead of becoming richer, millions of Americans got a lot poorer, practically overnight.
And that brings us to today…
Roughly 40 years later, the United States is in the middle of another currency war. But this time, our main adversary is not Europe. It’s China.
And this time, the situation is far more serious. Our nation and our economy are already in an extremely fragile state. In the 1960s, the American economy was growing rapidly, with decades of expansion still to come. That’s not the case today.
This new currency war with China will wreak absolute havoc on the lives of millions of ordinary Americans, much sooner than most people think. It’s critical over the next few years for you to understand exactly what the Chinese are doing, why they are doing it, and the near-certain outcome.
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you can blindfold them with dental floss
Yea, but there' some real cute women from China that want an older American male!!!
(or so I've heard).
This is how Scooby retained order:
https://www.youtube.com/watch?v=c2csMyvzoys
It's not a currency war.
It's the collapse of the Anglo American gold rigging system.
Porter Stansbury, producer of the video about the death of the dollar, predicted to die in 2011, or was it 2012, the dull, boring,and mono voice of the narrator was sickening. Yet here comes old Porter aain, still selling.
I like Porter... but, he totally got the shale miracle (sic) wrong... he was shouting from the rooftops about fracking... and then, just quietly stopped talking about it when the bottom fell out. If you had listened to him, you would have lost your shirt.
What losing trades did he recommend?
"When the history books are finally written" (laugh track deafening)
Does Thelma get wild with the peanut butter scooby?
There is a shortage of "marriable" girls in China. So your observation will soon be the other way round.
The way this will work out is that there are some real cute women from America that will want an older Chinese male!!!
that would be those slit-eyed chinese?
hope it makes you feel more secure.
"that would be those slit-eyed chinese?
hope it makes you feel more secure."
I believe you're being sarcastic so I'm giving you an up tick.
You seem to be alone?
Identify the real enemy.
China is an economic and political basket case. Their admittedly impressive growth is nothing more than the inevitable result from a shift from communism to fascism with just enough capitalism to be viable, at least for a while. They still are mainly centrally planned and I am sick of hearing how their central planners are superior to the west and take “the long view”. They may appear to make some good decisions from time to time but so too did the soviets. The cracks are appearing in their failed economic construct, and they will not be taking over the world any time soon.
You just have to look at the products they design to realise they're as short-termist as the next starving person.
It's amazing... China had a culture of perfectionism and quality known around the world. Kung Fu, Qi Gung and their medical tradition exemplify this.
But 6 decades of Talmudist-inspired economic "philosophy" destroyed it. Thanks Marx!
"You just have to look at the products they design"
Is that the correct comparison? Or maybe it would be more accurate to say "look at the products manufactured from the designs they copied"?
not sure about that, CD.
yes, china has big problems.
but, you only need to look at one thing: do they produce more than they consume?
they work hard, they invest, they save.
the lives of chinese will get better as the lives of americans get worse.
such is the ebb and flow of nations.
I live in Asia. They are twice as lost as we are. The "smart ones" are leaving.
I was there two weeks ago and private hedge funds, banks and .Gov have lent huge amounts of fiat money into the system.
The .GovChina are criminal gang just like Bush/Obama/Clinton.
Remember the bombings a few days ago?
When the shit hits the fan this time I don't think they can roll out the tanks and get the same effect....
China is an economic and political basket case? I don't think you have ever spent any time here is China. You couldn't find it on a map. Your remarks are more appropriate to America. Traveling back and forth between the two, I see the difference.
Hmm, the US government owes the FED about $7 trillion.
Arguably the Constitution does recognize The FED Cartel's right to issue currency -or to collect the vig on issueing currency via lending it into existance; -hense it is actually The FED Cartel which owes The People compensation for all those years of illegal pyramided compounding interest payments and fees.
Within three years a $trillion will come back to the U.S. as investments by rich Chinese trying to get their money and families out of China. Problem solved.
The Chinese have begun liquidating their Detroit land holdings. Not sure what that means.
The "welcome wagon" came around and they got to meet the neighbors.
They might have just found something more productive. If the debt can never be repaid - that's like Greece and Ukraine then, good grief.
If it cannot be repaid I am sure the Chinese might accept other things for reducing debt. Maybe not the two costly big black boxes in MD, but there may be other government owned assets that they'd like to have. They got the Waldorf, who knows today what they might be interested in tomorrow.
"They got the Waldorf, who knows today what they might be interested in tomorrow"
Well, it is election season - I hear that politicians are now on sale! BTFD!
To watch Chinese economic and monetary policy is like watching a slowmotion movie: The purpose and the action of the movement are clear, but it takes ages to finalize.
"The purpose and the action of the movement are clear, but it takes ages to finalize."
Ahh, Tai Chi. I get it now.
@stuckonzero: This was in August 2014!!!
http://www.ocregister.com/articles/home-631181-china-irvine.html
That is a possibility and would finish off the US: a million Chinese millionaires migrating to California. Then we'll have some awesome inflation here and the middle class would be turned into the new slave class. It's such a good idea I'm sure it's happening right now. Last time I flew in to LA, the line for 'citizens' was much longer than for visitors. It seems the latter were treated better too.
"this tab is now hundreds of billions of dollars more than what the U.S. government collects in ALL income taxes (both corporate and individual) each year"
maybe, but since that's not total federal revenue your basic premise is based on lies and bullshit... thanks for playing...
I see federal revenu at 3.2T.
I'm not sure where the author got his figures.
Okay. I'll be sure to blame the Chinese for all economic upheaval in the U.S. From now on......
"And the Chinese are trapped with an outstanding loan they can neither get rid of, nor hope to collect." What??? they hold bonds... these bonds can be sold or used to pay for other stuff... as the Chinese are doing right NOW, dumping massive amounts... adn I think it is closer to $800 Billion... a large error, eh? Is Stansberry in some bunker somewhere not to know this? His hyperbole is laughable.
I think they know they do not want to sell them all at one time. They do understand bubbles to some degreee.
They don;t have to.
Use them as collateral at western banks,take the money and run.
I suspect they have been doing something similar since 2008.
The USTs still show as Chinese owned. but are the western banks problem.
Theres no incentive for the FedRes to tell the truth, its a gun at their heads.
Only when phyz gold doesn't ship, they pull the plug on the west.
The Chinese have the most experience of recovering from fiat collapse, and hold the productive assets.
A little short term pain, for enormous long term gain,
Its certainly what I'd do in their place.
Well if they weren't doing it already they certainly will be now.
If they are not complete idiots that is....
just subscribe to his newsletter and he will be happy to splain it all!!!
/ actually dont, its like having a 5 year old wrapped around your lower leg...
he's a crank and basically so full of shit he has to wipe his eyes... just like most of the contributors we see floated here from time to time...
i heard that no significant political change will occur in the u.s. until a majority of the people can't afford cable tv.
When football becomes 40% of the average household income.
Little help, please. Not into fantasy football or real NFL football. I catch just enough TV to know that Fanduel and Draftkings are spending tens of millions in advert to capture a market. What is that biz model? Is it legalized bookie?
The Chinese owe the U.S. banking sytem, pension funds and corporations and more a hell of a lot more than $1.5 trillion. They barrowed more $17 trillion. So this article means nothing.
Invest in the yuan. Don't worry, like Doritoes, we'll make more.
i think you have gotten things badly reversed. the story says the u.s. owes the chinese. how much is currently in dispute here. most sites i just checked show somewhere between $1.2 and $1.5 trillion. but i'm open to evidence.
what is not contested is who owes who (hemingway dispensation).
and, judging by the weimar experience, it may well be the u.s. who is barrowing in the future.
"and, judging by the weimar experience, it may well be the u.s. who is barrowing in the future."
I see what you did there - tieing in the runaway inflation of Wiemar Germany to needing a wheelbarrow to carry the currency. I wonder if the OP subliminally planted that nugget?
Per the Treasury website, the Chinese held $1.24 trillion in US Treasurys at the end of July (the most recent data). And according to SocGen, the PBoC sold around $106 billion in August, which would bring the total down to $1.13 trillion. Since the amount held by Belgium has reverted to its historical norm, it’s reasonable to assume the Chinese have sold all the Treasurys that were being held in custodial accounts there. The overwhelming majority of their holdings, by the way, is relatively short-term paper (maturities less than 5 years).
Are you not aware of the "many thousands of Trillions of US Dollars" in gold backed bonds the Fed banks issued to the Quing Dynasty, then defaulted on?
I believe they were issued to the Kuomintang since the Quing Dynasty was gone by 1917, but you are on the right track. Seems the default went to the World Court in 1998 who ruled that the US had to pay the bonds by some date in Sept of 2001.
Mao-Bucks. Can't wait.
The 'Chinese' will establish a new financial order?
Hail to the new order, same as the old order, to paraphrase.
The banksters need to fool humanity that that's what's going on, in order to continue their theft.
The root cause of almost all the problems humanity has is government and banking.
If people can't figure that one out then it's game-set-match for control of the entire planet for all of eternity.
It's looking 50/50ish right now....
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Bullshit. I've been there. Wonderful people but their culture is not ever going to be useful in creating a "new financial order" Even the Chinese don't trust the Chinese financial system this article is bedrocked off of.
This article is pure bullshit.
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Chinese millionaires plan to leave in droves: Report
http://www.cnbc.com/2014/09/15/chinese-millionaires-plan-to-leave-in-dro...
I've been there too and they are very capable. They are milking this fiat money scam for all it is worth. Think about it. The know where this is going. Why do you think they have been hoarding gold. Print fiat and build ghost cities. Call it planning for the future. Once this shit crashes, they will have all the gold. The US will have its collective dick in its hand. China basically says fuck you, we have all the gold, we win. It's that simple. And Russia will be there to kick uncle Sam in the nuts after China gets done giving him a drop kick to the head.
...
How do you know they are hoarding gold?
FYI, central bank holdings are one of the most secretive subjects on this planet. Oh, you "read" they were hoarding gold... OK.
BTW. Gold is pointless. A big pile of shit "once this shit crashes" (as if)
1) How much gold is actually out there? Nobody actually knows.
2) Who has the unknown quantities of gold? Nobody actually knows.
3) Gold is cumulative asset. More is mined every year and supposedly stacked somewhere. This is by default a deflationary process. What if "Wherethefuckistan" announces tomorrow morning they just found reserves of 750mm metric tonnes of easily extractable gold? WHAT? The price is immediately in the toilet is what and suckers get flushed. You think that can't happen? Again, look up "peak oil" Graveyards are stacked with people long oil because "they will never find more and it can only go up"
Finally, how do you base an economic system of a completely unknown quantity, held by unknown parties in a deflationary process always open to new and massive discoveries entering the economic system? Answer. You don't.
"Finally, how do you base an economic system of a completely unknown quantity, held by unknown parties in a deflationary process always open to new and massive discoveries entering the economic system? Answer. You don't."
I think that energy (oil, gas, coal) will be a far more important asset in the future. While gold can be used as a currency to pay for energy or manufactured goods, it still has to be tied to something that in the long run has an intrinsic value to the holder.
China has been exchanging all the dollars they hold for TANGIBLE assets - Australian and South American mining companies, farmland in Africa and anything ekse of long term value. They already managed to industrialize a nation of peasants WITHOUT getting themselves in hock to western banking interests (like the US did). China simply said 'we'll provide cheap labor' and the West shipped factories there wholesale (all the goods produced there are part of CHINA's GDP). At the same time China insisted on technology sharing for high end products produced there or sold there - advancing their computer and aerospace industries by leaps and bounds.
Who got the better end of the 'Free Trade' Deal over the past few decades? The US or China? I suppose the answer is out until we see who's holdong more REAL assets of VALUE when the shit hits the fan......But if the dolar starts sinking fast, you can bet that those holdong it in quantity will be buyoing up anything of value at ANY PRICE simply to have SOMETHIGN instead of nothing. Better to buy up Exxon Mobil at 10 times the price than get stuck holding useless pieces of paper. If THAT ha[ppens you'dd see hyperinflation in the US unlike anything in history. All those dollars held overseas rushing back to the US to buy ANYTHING of value....
You speak of this as though it were a future event.
What do you think is going on, as in right this very moment, with US (and Canadian and Australian and etc., etc.) real estate?
And yes, there is hyperinflation in US real estate.
Imagine if the Chinese were instead rushing here to buy, oh, I dunno ... toilet paper?
Squeezin' the Charmin' would get you life without parole.
Simple. You don't plan an economic system. Do you not read zerohedge? If I were selling a product and I had to choose payment between Zimbabwian paper and gold, I would take gold. And, if I were a country like China who is sick and tired of the US federal government's bullshit, I would be using their fiat money system against them.
Correction: gold will be the ONLY thing they have after their financial ponzi crashes
"Print fiat and build ghost cities. Call it planning for the future."
I think you give them too much credit. Who would want to move to a ghost city in the middle of nowhere ?
Where are the employment opportunities ?
Also, uninhabited building deteriorate faster than inhabited ones which are maintained.
You seem to be assuming that China builds houses out of wood the way America does.
They do not. An unoccupied concrete tower with dozens of condos
has virtually no wood in it until people get ready to move in.
Ghost cities, the existence of which is grossly exaggerated,
tend to be at the outer edges of metro areas, or midway
between two cities.
Because cnbc is such a credible source their viewer base increases exponentially daily.
Ok you win. Multiple news sources from every country have reported this -- including China...
If you want your fiat financial order you can have your fiat financial order. I'm not paying them shit. Fuck off. Thanks for the junk.
China ain't doing shit, Porter. Go back to your cornucopian fantasies--more realistic.
The world is currently resting on two broken pillars....the US and China and it won't take a Samson to bring the temple down.
The problem is that no one in power really has any idea of how a post demolition world should be allowed to function. All they are contemplating is who will be on top of the rubble.
Throughout history, governments have turned against the citizenry. Examples are Stalin killing 8 milion Kulaks (by killing farmers, Stalin made food a weapon), Hitler, Pol Pot and many more. We are seeing that, in America, and things are going to get, really, bad, thanks to our politicians' owners.
In 08' when I tried waking everybody around me up I realized........
everyone around me is the enemy.
My neighbors, family, and 'friends'....not only were resistant to THE TRUTH,...but I realized they would turn me in and think they were good Americans for doing so.
Have shut my mouth since.
FUCK AMERICA!
No point. They're already so fucked nobody would feel anything.
the real danger in the us/china relationship isn't fx or gold, it's the day they google "sunk cost" & realize they've traded a generation of slave labor for a handful of glass beads & stops sending us shipping containers w/the various widgets that fill our store shelves. at that point your neighborhood walmart is going to bear a striking resemblence to the mid-80s soviet union...
More a matter of some day the Chinese will realize they can earn more selling the stuff they make to their own population or ANYONE besides the US. When THAT happens the US is truly fucked because we don't MAKE anything here anymore. And you can't FORCE China to sell you stuff at the end of a gun. What happens when nobody wants the dollar? What happens when nobody will sell you anything?
The US is broke and reindustrializing is gonna cost a fortune after giving away our industrial base. It's like after WWII when the Russians packed up any German factory they found... but we GAVE away our factories to China in exchange for cheap labor.
If you believe Chinese stats - the US is the 2nd largest mfg economy in the world.
If you believe the US stats, we are still the 1st. No big difference...
How many Detroits do you see in China? None.The next basket case going down the tubes is Chicago,Obuma's home town.As if he gives a flyin' F***.What a disgrace.30 more cities on the verge of bankrupty.See the picture?
His hometown is Nairobi. Chicago is where he first had homosexual relations.
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Dude WTF?
I've been there and obviously you have not. There is incredible poverty and wealth disparity just off the beat and path of the major "golden" cities.
Seriously, what the fuck are you talking about? You do realize this thread is about China right?
I think he was right in that there are no "Detriots," but having also been there, I agree he is wrong in that there are plenty of places that would fit a book like "The Jungle."
No falling apart cities, but plenty of vacant unused ones.
Yeah...Vacant unused cities which are falling apart.
Come on...The workmanship was so shoddy that many of the buildings are affectively uninhabitable.
They do not even have sewage.
They were Potemon Villages from the start and only were erected in order that the local party chiefs could score on the skim...The graft and corruption is endemic to that entire society. It is far worse than the USA's corruption and graft...if that can be surpassed, and it has...in China.
Furthermore buildings that are not used and maintained fall into decay quite rapidly.
Unfortunately wil the implosion of the Chinese Economy their Government will demonize the USA, perhaps rightfully, perhaps not as you cannot defraud the honest man, and mobilize their citizens for war against the USA. They have been ledt with a bunch of unredeemable future promises to be paid, after all (US Dollars).
Their Government will either go to war or it will disintegrate from the social chaos that will happen as a result of their collapse.
That is what is in store for the future. We will mutually destroy ourselves as Russia sits back on the sidelines. Then Russia and China will take out Israel. The USA will be a Nuclear Wasteland and irrelevant.
Yeah, the Chinese did nothing but follow suit as far as their economic situation over the last few decades, as far as we know anyway. Unless they financed and built all those cities to house their new American slaves, they are just as f@#ked as we are. If they are conspiring to oust the bankers, then more power to them! I am all for little to no govt and volunteerism based commerce, everything wouldn't seem so pointless and we would do/produce things that are actually needed for the good of humanity. And people would probably stop being nut bags all the time.....Good gawd!
FUCK AMERICA
Too late. Already more fucked than a crack whore in Detroit.
Fuck government long live the constitution .
The constitution is dead. Long live the constitution.
All you imaginary Rambo's on ZH who wanna give me thumbs down.
I can take it.
FUCK YOU 2!
"FUCK YOU 2!"
Shouldn't' this be 1! since it was the first of a double post? Come on man, don't be afraid to edit and make it look like you meant to do that!
All you imaginary Rambo's on ZH who wanna give me thumbs down. I can take it.
Good, because I gave you three down votes - one for each entry, including the duplicate. You're welcome.
All you imaginary Rambo's on ZH who wanna give me thumbs down.
I can take it.
FUCK YOU 2!
There's an angle I think we're missing here. Well, maybe not all of us, but some of us who comment about such things, including the author of the original post. That would be the vaunted Trans-Pacific Partnership, which apparently was finally inked this morning, or so I've heard. Supposedly this trade deal is part and parcel of the the United States' pivot to Asia, to form a trading block to counter the rise of China.
So tell me if this sounds like a good idea. Let's antagonize the country that makes all our shit, buys all our debt, has already stolen all our industrial know-how, and who regularly demonstrates its ability to hack into our national security systems. Sounds brilliant to me. I don't know what kind of PCP our policy-makers are smoking, but they seem to go rushing off in every direction entirely heedless of the fact that none of their actions fit together into a coherent geopolitical view, nor do they take any account of the actual and existing situation. We truly are an Empire of Chaos. A few examples:
1) Outsource all our manufacturing to China, and then form a trading block to counter the rise of China.
2) Yellen is desperate to get inflation up to the Fed's 2% target, but the government's own statisticians systematically understate inflation in order to keep debt servicing costs and COLA-adjusted entitlement spending down. Why don't we just make Shadowstats the official surveying bureau of the Fed and voila!, problem solved.
3) Invite several million illegal immigrants to work in the cash-based shadow economy doing the jobs Americans won't do, and then propose a ban on cash.
4) Fund and equip a horde of "moderate rebels" to take down Assad in Syria, and after they establish an Islamic caliphate in the power vacuum left by our previous misadventure in the region, fly 6,000 sorties pretending to bomb them, accomplishing nothing.
The list could be extended for several pages, but need I go on? You can damn well bet that China is going to respond to the TPP. So will China, Russia, India, and Iran. The other powers of the world have decided that that America, the old Capo, has become a doddering old lunatic and needs to be hacked down for the greater good. They are exactly right.
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"So tell me if this sounds like a good idea. Let's antagonize the country that makes all our shit, buys all our debt"
Yea but you forgot this wee little nugget. WE BUY ALL THEIR SHIT. Without the US and/or the EU China would be selling frogs on a stick to each other on a street cart with smudge all over their face.
The popint should be this. Why would you piss off your best customer that has all the cash buying all the product and floating your boat China? Why indeed. It would seem sombeodys britches are getting a little too big and they forget this is a symbiotic relationship.
Do you have any idea what woiuld happen to the Chinese economy if just Wal-Mart quit buying from China for just one month? Mayhem in China. I could give a fuck if WMT goes BK but China would be seriously hurting. Do the work and understand the relationship between WMT and the Chinese economy. Staggering.
You do realize what would happen to Wal-Mart if they stopped buying from China for a month? Yes, I can see you do; you've already mentioned it. And you 've drawn the correct conclusion: Wal-Mart would be gone, toast, out of existence, while China would only be "hurting."
Economic dumping does not benefit the dumpee.
"Wal-Mart would be gone, toast, out of existence,"
Why do you say that like it's a bad thing? Are you a large stockholder or something?
I didn't say it like it was a bad thing. I'm just going through the logic here.
I am the gold standard, world governments and the 1% can kiss my ass and tax my ghost .
http://www.bbc.com/news/blogs-news-from-elsewhere-34443752
https://www.facebook.com/zlataramajdanpek030
http://www.hecom.gov.cn/webadmin/files/614/IPM%20Majdanpek%20Majdanpek%20llc%28%E8%8B%B1%E6%96%87%E7%89%88%EF%BC%89.pdf
Okay ..
Question ..
1) Do ..
a) Porter Stansberry
b) The American People
c) The Chinese govt.
know ..
that, The American People have roughly 32.8 TRILLION?
(less roughly 1 billion commission for Wanta. he doesn't require much for his services.)
So, make that 32.7 TRILLION ..
The national debt stands roughly at 18.4 trillion.
The total trade deficit is roughly 1.8 trillion. (1.5 of that to China)
So ..
After the national debt is paid down ..
After the trade deficit is settled ..
We have roughly 12.5 TRILLION ..
We invest 1 trillion of that in a national, coast to coast, border to border (including a line in Canada, and a line to Alaska) High Speed Magnetic Levitation Rail System. One that the entire planet has yet to see. Doing that brings 2 MILLION new permanent jobs. (guesstimating 10x in contract and project employment. Not including spin-off businesses; i.e. restaurants, hotels, etc.)
The psychological effect of the -0- National Debt Clock; the balanced trade deficit, and of course, the PRC is paid off is reaping unimaginable benefits almost overnight ..
And ..
We are left with 10+ TRILLION surplus! Not bad huh?
So, why doesn't anyone know about this? Especially Stansberry et al ..
Could it possibly be this?
So, don't just blame Barry Soetoro et al. (They are certainly complicit.)
BLAME, Rupert Murdoch et al ..
http://honestthings.blogspot.com/2006/05/intellectual-genocide.html
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp
this happens after you get rid of the zionazi bankers, right? unicorn prime rib foreveryone.
The United States of America only stands any sort of survival by re-tooling every state in the union back to a manufacturing culture where Americans make their own products or every state in the union will not be self sustaining employment wise or for technological advancement/efficiency. America has to restore the once robust manufacturing base that sustained diversely trained college graduates.
The bean counters thought they could ship all manufacturing offshore, but as it turns out that business model will not be sufficient long term. Middle class America was a manufacturing culture that was sustainable. Management fucked it all up back in the seventies, but that does not mean that America can't reverse course and think objectively long term.
China will eat your lunch otherwise, America, I'm sorry to say.
And all my tools, and I'm a Mechanical Engineering Technician, are American made. All my woodworking shop machines are American too. It's not like I don't support American made machinery, tools, or Research & Development. Get with the programme, America, or you will die out entirely. China will eat America for breakfast on manufacturing, and if America ended up in war with China they would have a disabled manufacturing base in their midst IMHO.
If you believe Chinese stats - the US is the 2nd largest mfg economy in the world.
Trouble is US mfg is not people intensive. Robots.
remember burger flipping is in the manufacturing sector. the rest of manufacturing comes from weapons and airplanes and cars. without weapons and hamburgers the usa is not much of a manufacturer.
There are limits in what robots can do. We are still light years away from Asimov's world...
How much for a gook whore and one of those ghost city condos?
You seem to be twice as ignorant as most commentors
How much for a gook whore and one of those ghost city condos?
Still don't know how they are going to get their money back.
$1.5 trillion? No problem. We can QE that within a year. What's another $1.5T to the Fed...basically chump change.
"the American people owe the Chinese government nearly $1.5 trillion."
Now, how does that old saying go? If I owe the bank $100, that's my problem. If I owe the bank U$D1.5T, that's their problem.
Oh, that's right. I keep forgetting that they have eleventy billion people there all heavily armed and they're gonna' swim across that big old ocean and take what they want. They'd get much better results just secretly funding Mexican coyotes to keep the flow of illegal invaders entering our country and taxing our resources. Then, when President Camacho is sworn in he can write them a check for our outstanding balance.
There was also a time when Japan was the world's financial powerhouse. It was going to replace the US. Japan was buying up the US. And when they came crashing down they had to sell it all back (well a lot of it) at fire sale prices.
China's weakness? State owned enterprises. SOEs.
"In 2015, the American people owe the Chinese government nearly $1.5 trillion."
What a joke. The PhDs at the Fed could/will print $1.5 trillion in no time and buy up all the treasuries the Chinese own. Then do their usual by placing them off the books and holding them.
The Fed's debt shell game will trump any selling.
The Chinese would do better if they blew up the paper commodity market and demanded delivery of gold and silver from the COMEX.
China is aging .9 year per year. Their "miracle" will evaporate in less than 10 years.
Problem is, we'll be bankrupt long before that...
The US has been predicted to fall so often and so soon. I'm still waiting. But real soon now. For sure.
The crux of the matter is not how bad the US is (plenty bad), but how bad is it relative to the rest?
IMO it is a little early to bet against the US. Why? A more balanced economy. Farming, resource extraction, mfg (second largest in the world if you believe Chinese stats), and financial services. No other country has that balance.
this is the point, isn't it? the usa has to do something before the dollar truly is worth nothing. china has to do something to break away from usa hegemony. the usa offers carrots and a whip. china offers asia and africa(and merkel) the chance for more freedom a break from the usa would give them using china as the foil for that path. all they have to do is use the yuan to keep the usa in check. that revelation is spreading to europe. the usa loses power at the margins first before the final dissolution into post ww2 britain. putin just showed the margins are gone. the core is next. the king is dead. long live the king. afterall, none of you here are .1% or a policy bureaucrat so you will be a faithfully serving peasant, won't you?
China has to do something before the yuan is worth nothing. It is currently overvalued relative to their productive capacity. Which is why they started to devalue. Until they changed their mind.Excellent. US mfg becomes more competitive. Thank you China.
MMph... Read the whole article. Never saw "How The Chinese Will Establish A New Financial Order." Waste of time.
This view, just like the currency manipulation charge that has been held for years, is utter bullshit. China doesn't own the US. It owns 1.5T US bonds, or also called: paper. Btw the Fed owns 4T+. In theory, if China reduces its cash on treasuries, it also needs to reduce outstanding M2, because that is based on their own reserve ration which is ironically based on Fed funds they hold. So foremost, it is a Chinese problem, just like every other EM country mess out there holding $ is a problem for them not the US. Given the size of China, liquidating their $ holdings would have some effects on the US, but nothing compared to what would go down in China.
YES. This is the trillema of all Central Banks that cannot while remaining attached to the global economy can stabilize their domestic economy and their exchange rate/currencies at the same time. China's choice is obvious against a humongous internal debt piled up by the State Sector with misplaced investments and bad debts of their State Banks. They have to stabilize interest rate together with other fiscal measures to unwind debt without at the same time creating huge unemplyment that can lead to social unrest. This is already a herculean feat to achieve a long landing. So the volatility in its exchange rate is the trade-off in which it is defending through reserves drawdowns. Not initiating a currency war just preventing an implosion. How this will affect others is not their business and this feeling is mutual as far as US and EC are concerned.
From the above article:
Lucky for us, we know what’s going to happen. And we even have a pretty good idea of how it will all unfold. How do we know so much? Well, this isn’t the first time the U.S. has tried to stiff its foreign creditors.
And to hold us in suspense, he never does get around to telling us how it's all going to end.
Yeah a bit of an anticlimax
I submit there will be three orders: The TPP order, the Euro, and the Brics.
To each his own.
OMG so awesome, for the first time it's not a bipolar or unipolar world, but triplets!
American (& euroPeons) policy:
Buy goods & services cheap from dungeons(developing countries)
give them paper currency.
The dungeons buy gold.
When dungeons have too much gold,
invade them and get back the gold
(just like East India Company)
cycle runs again & again
-----
Today America (& euroPeons) is like the East India company
Modern Pirates
They want oil, goods & services cheap from dungeons
-----
West must be destroyed
"In short, we gave away 400 million ounces of gold and got $14 billion in exchange. Today, that same gold would be worth $620 billion… a 4,330% difference."
You know, the fact Americans swallow this kind of nonsense is part of the problem. That gold was not redeemed, it was recovered by the countries to whom it rightfully belonged.
It was not the USA's gold.
The USA's gold was stolen, looted around 1970. The US Government has no gold.
So how will they do it???? YOU ARE WASTING MY TIME!
The single largest buyer of US Government debt is the US Federal Reserve. All the rest of this 'us owes china' crap is chaff.
from eu to asia to america..all .gov's have a problem: the people have no confidence in .gov, and that is a big problem..no one can trust .gov anywhere. heck would not be surprised if 94 million" not in the work force" did not even vote in 2016..perhaps no confidence vote is to not vote at all.
the msm would try to prop up .govs ..with the non voting public are on vacation and could not vote..LOL
That 10% surtax levied by Nixon is 1971 was primarily aimed at the Japanese electronic and Automobile juggernaut; as for its steel mills products.
Japan was the main exporter then. And its economy under guidance of MITI and organised around the the big corporations (Mitsui, Mitsubishi, Marubeni etc.) was on a roll.
Frustrated by Nixon's protectionist move Japan CREATED the OUTSOURCING model by investing massively in the Young Tiger economies of Taiwan, Korea, Singapore and Hong Kong. Lee Kwan Yew of Singapore being a great beneficiary. They created the template that WS would use in the 90s.
SO Japanese capitalist acumen, as that of Germany, made those two countries-- who did not produce any Petrol-- the great beneficiaries of America's downturn of the 1970s; along with UK, France and Italy; all hit by rising imports of ME oil and embroiled in stagflation blues.
What saved the US then subsequent Voelcker's austerity cure in 1979-1981, which protected the US commercial banks from default (crash of 1979), and helped shoe in the NEW model, aka the creation of the FIRE asset pump of Reaganomics and Thatcherism. Oligarchy was back with a vengeance since 1929 demise.
It pulled the money into supply side ramp up. It used cheap oil, from 1984 onwards, (Saud complied by opening wide its tap) to kill the Soviet and as well the Japanese economies under USD's new petrodollar hegemony (Plaza/Louvre accords) making WS the harbinger of NWO order when the Soviets imploded.
But it did not stop the debt pump that Friedmanite monetarism had bequeathed us by 1971 BW revoke. Debt kept piling up, albeit the Clinton years improved the Budgetry situation by making the US Budget a surplus, all the while encouraging outsourcing based on private WS generated shadow banking debt spending to use Chindia's cheap labour for the 1%.
The US economy had gone virtuous on the State side and Profligate and dispendious on the Private sector bankster side, at the expense of the middle class now addicted to cheap imports and closing home shops.
GWB made its worse, both for State side, in his ruinous wars, as for the private sector FIRE pumped WS machine, totally derivative drowned and Bubbelonomics addicted, boosted on steroids.
The Lance Armstrong economy stupid! And it led to Lehman. The market pulled the rug underneath them and Ben then made steroid pumping a WORLD DISEASE.
"which allowed U.S. companies to buy European assets with dollars that were artificially held up in value by a gold peg that was nothing more than an accounting fiction."
But, but, but... The gold bugs keep telling me that a gold standard will keep the government honest! How dare you suggest that a gold standard could be gamed by dishonest bankers!!! Just keep telling yourself, "Gold is 'intrinsically' valuable," until you believe it.
"It’s critical over the next few years for you to understand exactly what the Chinese are doing, why they are doing it, and the near-certain outcome."
Um... did you even discuss this? I mean, aside from the history lesson on why a gold standard is economically stupid, I didn't see anything about what the Chinese are doing, exactly. You maintain that they are waging a currency war, and I guess you mean that they are selling their Treasuries, I assume in an attempt to drive down the value of the dollar relative to their own currency so they can displace the dollar as reserve currency? So the logical question is, why are they trying to drive down the value of their remaining Treasury holdings??? More to the point, why are they simultaneously devaluing their own currency while, supposedly, trying to drive down the value of ours??? Is anyone else detecting some huge problems with this line of reasoning??
Seriously, you gold bugs need to sit down and do some real thinking about all the magical properties you ascribe to gold. It has huge problems, it's not a panacea and it keeps going down in value.